OIL CITY, La., Oct. 15, 2009 (GLOBE NEWSWIRE) -- Black Dragon Resource Companies, Inc. ("the Company", "Dragon") (Pink Sheets:BDGR) has announced through the efforts of the CEO, Dr. Bailey, Black Dragon has successfully negotiated an immediate reduction in the lease operating costs as charged by its field operating company, Four Star. Lower oil prices have severely affected the economics of the company, and yet the fixed overhead rates per well for operating have not changed. Four Star has agreed to reduce the charges by some 75%. This cost reduction will have a major impact on the balance sheet as the lease costs had historically represented some 66% of the total operating costs. Dr. Bailey has continued his concentrated effort to reduce costs in the face of poor economic times. This reduction will be evident and its impact seen on the year end results. Under the current cost agreement, Four Star was the lowest cost contractor in the area. This reduction will further enhance that competitive advantage in Black Dragon's favor.
Also being announced in cooperation with Four Star is the initiation of a project toward the recovery of gas production from wells. The study will focus on research and development on methods and cost to begin installations of gas collection and delivery systems for those leases with uncollected associated gas currently being vented. This project will cover more than a dozen leases and will generate revenue as well as making a positive impact toward environmental improvement.
Black Dragon is an oil and gas exploration and production company currently focused on the acquisition of mature, producing and existing domestic oil and gas fields. This focus has eliminated exploration risk, reduced costs of completion, and provided rapid generation of income in a niche market where larger independent and major oil companies are not positioned to compete. Black Dragon intends to recomplete additional shallow producing wells and to expand its focus to include drilling of new wells some to deeper levels and to purchase additional leases.
Forward-Looking Statements -- Safe Harbor:
Certain information discussed in this press release may constitute forward-looking statements within the Private Securities Litigation Reform Act of 1995 and the federal securities laws. Although the Company believes that the expectations reflected in such forward-looking statements are based upon reasonable assumptions at the time made, it can give no assurance that its expectations will be achieved. Readers are cautioned not to place undue reliance on these forward-looking statements. Forward-looking statements are inherently subject to unpredictable and unanticipated risks, trends and uncertainties such as the Company's inability to accurately forecast its operating results; the Company's potential inability to achieve profitability or generate positive cash flow; the availability of financing; and other risks associated with the Company's business. The Company assumes no obligation to update or supplement forward-looking statements that become untrue because of subsequent events.